IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


V 


V 
'^.# 


<.  <f 


'^ 


CL 


4 


o 


1.0 


I.I 


1.25 


[';|2.5 

||[||Z2 
[20 

II  1.8 


\A.  ill  1.6 


Photographic 

Sciences 
Corporation 


23  WEST  MAIN  STREET 

WEBSTER,  N.Y.  14580 

(716)  872-4503 


<V 


c^     ..^> 


^^^ .. 


\\ 


^9) 


N^^     ^  \  Wr\ 


t^ 


^ 


^^ 


^ 


'% 


% 


CIHM/ICMH 

IVlicrofiche 

Series. 


CIHM/ICMH 
Collection  de 
microfiches. 


Can?t.an  Tnstttute  for  Historical  Microreproductions  /  tnstitut  canadien  de  microreproductions  historiques 


€^ 


Technical  and  Bibliographic  Motes/Notes  techniques  et  bibliographiques 


' 


The  Institute  has  attempted  to  obtain  tne  best 
original  copy  available  for  filming.  Features  of  thit 
copy  which  may  be  bibliographically  unique, 
which  may  alter  any  of  the  images  in  the 
reproduction,  or  which  may  significantly  change 
the  usual  method  of  filming,  are  chacknd  below. 


D 


Coloured  covers. 
Couverture  de  couleur 


□    Covers  damaaed/ 
C 


Couverture  endor  ,nagee 

Covers  restor'^d  and/or  laminated/ 
Couverture  restauree  et/ou  pelliculee 

Cover  title  missing/ 

Le  titre  de  couverture  manque 


I      I    Coloured  maps/ 


Cartes  gAographiques  en  couleur 


□    Coloured  ink  (i.e.  other  than  blue  or  black)/ 
Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 

I      j    Coloured  plates  and/or  illustrations/ 


D 
D 


n 


D 


Planches  et/ou  illustrations  en  couleur 


Bound  with  other  material/ 
Relid  avec  d'autres  documents 


Tight  binding  may  cause  shadows  or  distortion 
along  interior  margin/ 

Lareliure  serree  peut  causer  de  I'ombre  ou  de  la 
distorsion  le  long  de  la  marge  interieure 

Blank  leaves  added  during  restoration  may 
appear  within  the  text.  Whenever  possible,  these 
have  been  omitted  from  filming/ 
II  se  peut  que  certaines  pages  blanches  ajoutdes 
lors  d'une  restauration  apparaissent  dans  le  texte, 
mais.  lorsque  cela  etait  possible,  ces  pages  n'ont 
pas  iti  filmdes. 

Additional  comments:/ 
Commentaires  supptementaires- 


The 
to  th 


L'Institut  a  microfilme  le  meilleur  exemplaire 
qu'il  lui  a  ete  possible  de  se  procurer.  Les  details 
de  cet  exemplaire  qui  sent  peut-etre  uniques  du 
point  de  vue  hibliographique.  qui  peuvent  modifier 
une  image  reproduite,  ou  qui  peuvent  exiger  une 
modification  dans  la  methode  normale  de  filmage 
sont  indiques  ci-dessous. 

□    Coloured  pages/ 
Pages  de  couleur 


r**]    Pages  damaged/ 


Pages  endommageas 

Pages  restored  and/or 

Pages  restaurees  et/ou  peiliculees 


r~n    Pages  restored  and/or  laminated/ 


□    Pages  discoloured,  stained  or  foxed/ 
Pages  decolorees,  tachetees  ou  piquees 

□    Pages  detached/ 
Pages  detacheea 

r~V'Showthrough/ 
l — I    Transparence 

0    Quality  of  print  varies/ 
Quali:e  indgale  de  I'lmpression 

□    Includes  supplementary  material/ 
Comprend  du  materiel  supplementaire 

□    Only  edition  available/ 
Seule  Edition  disponible 


The 
poss 
of  t^ 
film! 


Orig 
begi 
the  I 
sion, 
othe 
first 
sion, 
or  ill 


The 
shall 
TINl 
whic 

Map 
diffe 
entir 
begii 
right 
requ 
metl' 


D 


Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmed  to 
ensure  the  best  possible  image/ 
Les  pages  totalement  ou  partiellement 
obscurcies  par  un  feuillet  d'errata.  une  pelure. 
etc.,  cnt  6te  filmees  d  nouveau  de  facon  a 
obtenir  la  meilleure  image  possible. 


This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ca  document  ert  filme  au  raux  de  reduction  indiqu^  ci-dessous. 

10><  ^4X  MX  22X 


26X 


SOX 


H 


12X 


'6X 


20X 


24X 


28X 


32X 


The  copy  filmed  here  has  been  reproduced  thanks 
to  the  aenerositv  of: 


to  the  generosity  of: 


Metropolitan  Toronto  Library 
Canadian  Histoiy  Department 


L'exemplaire  filmd  fut  reproduit  grdce  d  la 
g6n6rosit6  de: 

Metropolitan  Toronto  Library 
Canadian  History  Department 


The  images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  with  the 
filming  contract  specifications. 


Les  images  suivantes  ont  6t6  reproduites  avec  le 
plus  grand  soin,  compte  tenu  de  la  condition  et 
de  la  netteti  de  l'exemplaire  film^,  et  en 
conformity  avec  les  conditions  du  contrat  de 
filmage. 


Original  copies  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustratad  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  Illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprim^e  sont  film^s  en  commen^ant 
par  le  premier  plat  et  en  terminant  soit  par  la 
derniere  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration,  soit  par  le  second 
plat,  selon  le  cas.  Tous  les  autrus  exemplaires 
originaux  sont  film6s  en  commengant  par  la 
premidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration  et  en  terminant  par 
la  dernidre  page  qui  comporte  une  telle 
empreinte. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  —t^  (meaning  "CON- 
TINUED "),  or  the  symbol  V  (meaning  "END"), 
whichever  applies. 


Un  des  symboles  suivants  apparaitra  sur  la 
dernidre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbo^e  -^  signifie  "A  SUIVRE  ",  le 
symbole  V  signifie  "FIN". 


Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
filmis  A  des  taux  de  r6dL<ction  diff^rents. 
Lorsque  le  document  est  tiop  grand  pour  Stre 
reproduit  en  un  seul  clich6,  il  est  fi!m6  d  partir 
de  Tangle  sup6rieur  gauche,  de  gauche  d  droite, 
et  de  haut  en  has,  en  prenant  le  nombre 
d'images  nScessaire.  Les  diagrammes  suivants 
illustrert  la  m^thode. 


X 


1 

2 

3 

1 

2 

3 

4 

5 

6 

ST  AT  KM  KM 


e 


t* 


xifttca 


:J     V- 


nr  TTIK 


yL^A^CilL    TRANSACTIONS 


'd*/ 


1 1 


^r 


or 


rilH   I]\iNKlN(i  KIHM 


or 


TllUSCOTT,  G^vEEN  &  CO. 


OP  TORONTO, 


i  ■     ''" 


IN  CONNECTION  WITH 


GREE#..,,J|#C 

•■    "■••■■v^-:.Jj;'.*rij.^v 


OWN   AiN  1)  (A). 


OF  NEW  YOKK ; 


AKD 


r.  RO  W  N,    BUCK  LAND    k    CO. 


OF    BUFFALO 


BUFFALO,  JULY  ISlkf. 


BUFFALO. 


<r 


i»    i 


V 


<l 


« 


>T  \TE:vrF.\T. 


"  Nothing  extenuate,  nor  set  down  aught  in  malice.' 


i»      f 


V? 


In  consequence  of  ihc  many  omiillcting  reports  in  cir- 
culation relativr  to  the  afiairs  ol  the  late  A^i'icultura 
Rank  'Ai  'Vorotno,  the  undersigned,  (ieorge  Truscott  au'.. 
John  Cleveland  Green,  are  constrained,  as  well  from  regard 
to  tii.-if  own  characters  as  from  deference  to  pubhc  opni- 
luii  to  trace  out  the  origin  of  their  accummulated  niistor- 
tuhcs,  and  to  present  a  correct  view  of  their  present  pecu- 
niary circumstances.  ^  •       1     1 

A  narrative  confined  to  get»eral  assertions  carries  luile 
conviction  to  the  reader;  and  it  is  therefore  preterahU^  lo 
incur  the  risk  of  being  tedious,  rather  than  the  suspicion  ol 
being  incorrect:  nor  is  it  believed  that  men,  who  depre- 
cate injustice,  or  wlic  value  truth  in  the  abstract,  will  be 
deterred  from  the  peiusal  of  this  exposition,  either  by  the 
length  or  the  rug/j^edness  of  the  way.         ,     ,       ,  .. 

Entertaining  these  sentiments,  the  undersigned  may,  witu- 
out  further  comment,  proceed  to  stale  thai  they  commen- 
ced  business  as  private  bankers  at  Toronto  in  June  lbo4  ; 
and,  v%ithoul  dwelling  on  the  prejudices  or  (ormidablc  opposi- 
lion  they  had  to  encounter,  both  ai  the  outset,  and  during  the 
whole  of  their  career,  it  is  sufficient  to  observe  that  they  were 
not  found  inadequate  to  the  task  they  had  undertaken. 

The  growing  importance  of  this  city  indicated,  at  a  very 
early  period,  the  expediency  of  establishing  some  connection 
at  Hullalo  ;  and  in  the  ensuing  month  of  October  they  seU  cted 
John  W.  Buckland,  one  of  their  clerks  at  Toronto,  to  ope.i  an 
office  here  :  from  the  same  date  they  voluntarily  raised  his  sal- 
ary from  |40()  per  annum  to  $1000. 

"~No7r  -The  nu.n1.0Ts  i.>  brackets  correspond  t«  lhos«  ofthe^  original  agi^fc- 
„H.  "  lot  o;r"couu1,s  and  other  documents,  which  arc  ui  the  pousenaiou  of 
TruHcU.  A  tir«en,  and  ujay  be  veieried  to,  to  prov.-  ili.ur  accurm  > . 


t 


fii  Tfip  roiKluci  C}^  tli(^  lins!ness  pntrustcrl  to  Mr.  Btickland. 
lie  ilisplnycd  considerable  lact  and  /Miii^ment }  ant!  confiding 
#n  his  (i(;t'i;u';ilimi.^  Ui.it  lio  teiiiplatioii;  ul  profit  should  urge 
luin  to  etiguge  iti  any  transactions  of  a  duiibtrul  nature,  larger 
means  were  gradually  placed  under  his  coinrol. 

About  the  13lh  ofDecernber,  [l.]Mr.  Buckland  submiiiod  a 
proposal  for  forniing  a  connection  with  Uussell  Scar'e  Brown  ; 
andt  ahliough  declined  in  the  first  instance,  tlie  Uiidersiizned 
were  induced,  by  suhsequent  represeuiaiions  to  agree,  in  April 
1835,  [2.]  to  give  both  parlies  an  intere.it  in  ilie  buiineii  ut 
Buffalo—that  is, 

To  R.  S.  Brown  25  per  cent  of  the  neit  proHts; 
"  J.  W.  Buckland  15  '*     «  «*         »*  . 

Neither  of  them  were  in  a  situation  to  contribute  any  capital 
whatever  }  and  the  undersigned  consented  to  advance  ihein 
$'30,000  on  tljeir  joint  promissory  note  for  one  year  certain, 
bearing  an  interest  of  6  per  cent.  It  was,  also,  stipulated, 
"  That  no  part  of  the  original  capital  of  |30,000,  or  of  any 
other  funds  provided  by  Truscott,  Green  &  Co.  should  be  in- 
vested in  real  property  or  diverted  from  the  ordinary  business 
of  Exchange  and  Discount  Brokers  ;  nor  shall  any  fund  rais- 
ed on  the  joint  credit  of  J.  W.  Buckland  and  \\\  S.  Brown 
he  differently  appropriated." 

Immediately  after  the  execution  of  this  agreement,  Mr. 
Brown*s  credit  and  respectability  were  considered  as  pot  to  tho 
test  by  his  obtaining  the  endorsement  of  R.  S.  Williams  &  Co. 
on  bills  for  £5,000  sterling,  drawn  by  the  Agricultural  Bank 
on  N.  M.  Rothschild  of  London — and  by  means  of  which 
they  were  more  readily  negotiated  at  Now  York. 

Mr.  Green  then  went  to  England  and  provided  for  the 
foregoing  bills  j  and  on  his  return,  in  the  autumn  of  1835,  he 
found  the  advances  of  the  Agricultural  Bank  to  have  been 
raised  from  -^SO.OOO  to  about  ^88,000  ;  an  increase  induced. 
in  a  great  measure,  by  the  representations  of  Brown  &  Buck- 
land  [3-4.]  of  the  abundance  of  Canada  money  at  Buflalo,  bnt, 
which  whenever  remittances  were  forwarded  for  the  purchase  of 
it,was  said  to  have  disappeared  ;  and  then  assurances  were  given 
that  the  money  could  be  loaned  very  advantageously  at  Buf. 
falo,  and  should  be  returned  whenever  it  might  be  required. 

However,  the  fallacy  of  these  representations  became  appar- 
ent, when  an  application  was  made  on  the  29th  of  Oct.  [5.]  to 
reduce  the  balance  to  $60,000  ;  and  this  reduction  not  taking 
place,  the  Bank  sustained  much  inconvenience  at  the  time,  and 
\yas  afterwards  subject  to  vaccillating  and  injudicious  opera- 
tions from  the  same  cause. 


."•* 


"? 

1 


A 


10  was  then  al 

u'  fin  ofTice  ibere 


I'd   to  llu'  mitlrrsinnc 


that 


()U,oon 


On  f^n  t^3th  of  Novoinbor.  fr,.]Mi-.  Hrnwn.  wl 

New  York,  communiMiUMl  his  views  of  opcniii 

in  the  spring  of    1836,   and  proposf.l   to  llu'  n 

their  acKre^-^te   advances  should  he  uitreastMl  to  .w  1 

he  was,    however,   apprised  that  $80,000,  must  eon.innie    iha 

!i,„lt  ;  ami,  on    ihe  2nd   Dec    [7.]  he   wrote,  -  I  I'^ve  been  ur- 

ced  by  two  Banks  in  whose  direction  I  have  persona!  fm-mls, 

I  open  mv  acconni  with  then,   and  ihey  say  I  sha     be  placed 

No    1   in  the  scale  of  accommodation  •  and  m  our,  'the  Natian- 

nl  Bank  '  I  am  olVered  the  appointment  of  Director."      On   re 

turnin"  to    Buffalo,  his  solicitations  for  further   temporary  rc- 

miltances  were  repeated,  and   accompanied  with  the  usual  pro, 

fo«%inn  of  rcDavinK  them  when  needed. 

BvreLctg  Ibcamountof  Bills  Discounted  in  C;anada  and 
borrowing  money  in  England,  the  undersigned  were  enabled 
to  meet  these  growing  n.id  almost  incessant  demanils  on  them, 
so  that  when  in  April  183G,  new  articles  o!  P-j^-''^!;-!'  --'^ 
executed,  the  amouni  owing  al  Buftala  was  •^Ul,04b.l, 
Or,  in    permanent  capital,  ??'???,,•> 

In  a  Ouctuating  lemijorary  ha'ancc,     .5l,tj4c.^^.       ^ 
Btit  in  this  latter"  snm  was   included  .$-0,000  ot    Agricultural 
\Ux^\i  notes  rec|nired  fnr  sa.nc  spec, do  ptirpc>se  by  Brown  .\: 
Burkland,  and  not  intended  to  he  put  in  iirculaluni. 

As  it  was  not  proposed  to  continue  advances  to  l.em  upon 
such  a  scale.d.ev  were  successively  advised  on  the  16tli  and  23d 
April,  and  again  on  the  7th  May,  [8.  9.  10.]  that  a  reductum 
of  16  or  .$20,000  must  be    made   before   tie  cxptraUon  ol 

***  AW  this  time,  Mr.  Bro^vn  commenceJ  business  at  New 
VoVu  under  he  f.rm  of '^Green,  Brown  U  Co."  .f  ceased  ex- 
ere   in^^  any  imn»ediate  or  direct  iniluonco  over  the  busjnes.  at 
Bin:";  the  latter   being  carried  on  agreeable  to  the  Partner 
'hip  Dc^d.  "under  the  direction  and  control  of  the  sa,d  George 
Truscotl  Lnd  John  Cleveland  Green,  but  under  the  personal 
m  r^ement  of  the  said  John  Wellington  Backland  and  of  any 
Xr'pai-tT  whom  they,  the  said  Geor^^.Truscott  and  John 
Cleveland  Green  may  hereafter  apponU."  And  accordmgly,^!. 
i„  the  following  October  tins  trust  was  reposed  .J^'^^'X  "»*,,: 
BucUland  and  Mr.  E.t.n.  It  was  further  st.puU.ted  u.  the  15th 
clause,  -That  ««  money  shall  be  lent  or  advanced  »«;»;y/;|  f  . 
said  Partners  without  the  consent  n,  wnt.ng  «i  all  the  othe. 
Partners  being  first  had  and  obtanied  ;  and  that  it  an>  Par  • 
ner  shall  at  any  time  stand  iodebced  to  the  P«^»«;''^^;'P  ^«!,^^^ 
in  any  sum  or  sums  of  money,  to  the   amount  of  ^1260  cur- 


6 


Wni  nion«»y  of  f ^pper  CmiaJii,  or  upwai-flv.  wiilioni   viiffi  ron- 
sent,  suclnjurtiifcr  iliali  bt.'  iMJtnfdiatt'l^  v.xpt'iUjii    lIil- puiuitT- 

Havini;;  aJsO  ilefiiied  in  the  same  iiistriiiiu'iit  tlic  legitimate 
nature  of  their  fiiliire  business,  and  |)rohibite(l  nny  invcstmniitR 
in  |]ank  Stock  or  National  Securities,  without  the  consent  of' 
ALL  the  partners,  the  un(lersiti;ned  reposed  with  nidintitPt!  con- 
fidence on  the  good  faith  and  integrity  of  liie  parties  vviiii  vvhoin 
they  were  connected,  and  whose  interests  seemed  so  indissoiu- 
bly  blended  with  tlieir  own  :  and  it  never  occurred  to  t!)em« 
cither  prior  to  this  da'e  or  subsequently,  to  enter  upon  any 
examination  of  the  bcoks  at  Huflaio  for  the  purpose  of  verifying 
the  stalt"ments  of  profit  and  loss  oceasioiially  submitted  to 
them. 

The  balances  in  favor  of  Toronto  continued  undinrinished,and 
although  the  undersigned  actjuiesced,  in  the  first  instance,  from 
representationsof  the  evil  being  lemporary,n»d  of  its  being  rem- 
edied as  soon  as  Mr.  Brown  should  **gel  uuder  weigh"  at  [12. 
New  Y"orU,  ibey  discovered   subsequently  that  it  had  taken  a 
permanent  character,   and  was  ascribablc  to  the  heavy  invest- 
mentis  in  bank  slock,  made   without  any  previous  consuUaiiun 
willi  the  undersigned,  slightly  and  incidentally  touched   upon 
in  correspondence,  and  only  fully  developed  when  embarrass- 
(nents  grew  out  of  the  operations.  For  instance,  regardless  of 
the  spirit  of    the  articles  of  partnership   of  the  8ih  of  April 
1835,  and   of  th?  more  direct  provisions  of  the  Deed  of  the 
2«d  of  April    18  30,  it  appeared  that  Brotvn  Si  Buckland  had 
purchased  of  ihe  Lumbermen's   bank  stock,  about     $'52,000. 
of  the  Connnercial  Hank  at  Buffalo,  on  separate  ac- 
count, -  -  -  -  -  aClHlO, 
and  in  joint  account  with  other  parties,  76  oOO. 
And,  a?  proprietors  of  stock,  they  represented  that  both  banks 
would  be  brought  under  their  control  ;  and  that,  indepeml»'«t 
of  this  advantage,   tlie  dividends   would   constitute    a  profltii- 
ble  return  on  the  capital  employed.     However,  a  few  davs  la- 
ter, that  Is,  on  the  11th  day  of  June,  a  contract  was  made  f  LJ 
with  I.  T.   Hatch  for  tlie   sale  of  $40,000  Commercial  Stock, 
on  the  joint   account,  payable  in  two,  four  and  six  months  at 
the  rate  of  170  per  cent — and    having  for   this  profilablo  con- 
sideration abandoned  their  influence  in  the  bank,  it  was   pro- 
posed   that  Mr.  Green  should    proceed  to    London  and   uy- 
poTHKCATK    Q  further  amount   of  stock,  so  as  to  carry  on  the 
general  business  of  exchange  between  the  two  countries,  with- 
out the  necessity  of  disposing  of  stock  onnaintainitig  cash  bal- 
ances in  London. 


•I 


I 


tt 


9i 


•1 


To  perfect  au    ;irr;u.g(M,ipnl  ..1  ilii^   kiinl.    il.c  »vrlillcole»frf  V 

ll,c Comi«crci«l  l^^nk  previously  hrUl  l.v   Urawnk  UucIAmA      ..- 
were  consolHlateil ;  and   lib.uii  ihc  21th    ot    Jmie 

400  shares  were  irau^len-cd  into  tlio   vnparalc 

name  oi  i  i.-  n     i  i     i 

,t  ((  «  ,1.\V  .Uncivhuid, 

«  rciiiuii.rd  in  «•  U.S.  Hrown. 


323 

400 


1 153  Shares.  .  ^, , . 

On  the  9th  of  August,  whrn  Mr.  (.reeii  wni.,  on  the  eve  ot  his 
departure  from  New  YorU,  Mr.  15r<.uu  nddrcssc-d  a  letter  j  14. 
to  him  setting  ronl.  the  particulars  of  the  stock  hold  l)y  tit- 
firm,  and  the  flourishing  condition  of  il.o  banks;  an(  n.  ...  • 
subsequent  letters  oflhe  IGlh  of  Aug.  and  Isl  of  bept  Ll-»-»«^- 
he  dwell  upon  these  topics,  but  carefully  wiihheld  nil  iioiu-c 
of  anvininnction- having  been  served  al  the  suit  ol  il.c  Com- 
mercial Bank,  to  prevent  the  transfer  of  the  stocU. 

Unacquainted  with  any  such  proceeding,  Mr.  breiu  nego- 
tiated a  credit  in  London  win,  two  banking  houses— one  lor 
JC 5  000  sterling  by  hypothecating  243  shares  of  ComnuMCial 
stock,  and  the    other  for  Je20,000  sterling  by  undertaking 

to  hypothecate,  ,      c.  .«i 

•'•^  480  shares  Commercial  btocK, 

and     1040     "       Lumberman's     do. 
It  was  not  however  until  his  return  to  New  York  that  any 
intimation  reached  him   on  the  subject  of  a  partial  injunction, 
on  the  stock  in  the  separate  names  of  J.  W.  BucUland  hi  K.  h. 
Drown— and  it  was  then  spoken  of  by   the  latter  as  a   mat- 
ter o{  slight  moment,  and  placed  in  the  following  pomtof  view 
—that  Mr.  Hatch  having   accomplished   his  object  of  getting 
the  control  of  the  Commercial  Bank  had  found  it  convenient 
10   recede  from    his  agreement ;  and  to   cloak  this   design, 
naU  made  an  application  to  the  Court  of  Chancery  fo' »" '"' 
junction  under  the  allegation  that  some  part  of  the  stock  had 
been  purchased  with  the  lunds  of  the  bank,  obtained  by  other 
parties  as  discounts,  and  whose  notes  might  not  be  paid  at  ma- 
turity !    that  Mr.  Hatch  only  aimed  at  creating  a  temporary 
aiuiculty  to  incapacitate  him  from  delivering  the  stock  at  the 
extravagant  price  agreed  upon,  but  that  the  attempt  would 
fail,  as  there    was   other   stock  ready   for  delivery— that  he, 
Brown,  had  taken  the  advice  of  Mr.   Dudley  Selden  of  New 
Vork,  who  assured  him  that  the  injunction   could   not  be  sns« 
tainedon  such  grounds— and  that  his  only  reason   for  not  ap- 
plying to  the  couri  to  set   it  aside  was  the   fear  of  exposing 


8 


i: ! 


/    \ 


l!te  prorrHtncr?  nf  thf  Trank.  frehurtfU?!?  the  s!ocl« holder';,  aiiU 
perhaps  leadinu  to  tin.'   ies<jci!li'>ii  uf  ilic  bank  charter. 

This  reasofiing  appeared  sufficiently  pladsible,  ami  ii  miiar- 
tiiuatcly  iiilliienced  l\lr.  Greuii'i  ni'tor  conduct,  lov  he  entertain- 
ed no  isuspicioii  at  that  lime  di.M'ogaiury  lo  ihu'  honor  or  \i  ra- 
rity of  his  partner. 

liowuvpr,  having  laker,  np  iiis  inrniancnt  residence  at  Xcvv 
Y'ork,  Mr.  Green's  attention  was  ch'awn,  on  the  1  ith  of 
JJec'inher,  to  the  large  ''baiatiee  of  casl»"  on  the  day  bonlv, 
anu  uniing  to  -  •  •        $'8C,.  KM)  •>  I 

and  on  being  told  by  IMr.  Hrovvn  that  it  litcliidcd  a  very  cc«- 
siderable  amount  of  unourrenl  moiiey  purchased  ai  a  discotnii, 
will)  some  oilRr  items  not  carried  to  account,  Mr.  Green  pro- 
Cv'^eded  to  investigate  the  [)articulars,  and  found  the  vesulls  as 
follows—  [17 

In  uncurrent  notes,  -  -  $3,791.00 

"   current  jiotes  and  specie,         -         -  172.66 

"■  cheques  of  sundry  persons  not  carried  toac* 

count,  >     ^  -  -  3,798  82 

"  salaries  and  petty  expenses,  -  -  .  1,361  03 

•'  Slarkweather  &i  Brown's  drafts  on  U.  S.Will- 
iams &t  Co.   liol  entered   at  ihtir  debit  in  tiie 
books  oflhe  oflice,but  collected  from  pencil  me- 
niorandums  on  the  fly  leaf  of  a  small  book,  74.653  83 
•*  cheqwes  of  El.  S.  Brown,  ^         -  249  00 

**  cash  advanccii  to  do.  -  *  658  07 

And  deficiency  in   cash  drawer,  but  after- 
wards accounted  for,  -  -  1,999  89 
Bill  counted  as  cash  but  not  payable  until  the 
16th  of  Deecember,            -               *  817  41 


L 


being  a  total  of  -  -  $86,400  61 

On  appealing  with  dfep  anxiety  to  Mr.  Brown  for  expla- 
uation  as  to  the  preceding  item  of  $74,652  83,  he  assured  Mr 
Green  ihat  it  was  for  account  of  Brown^  Buckland  &.  Co.  the 
drafts  of  the  latter  not  being  as  he  said  so  negotiable  at  Buf- 
falo as  those  of  Starkweather  Sa  Brown  on  H«  S.  Williams.- — 
A  list  of  such  payments  was,  therefore,  forwarded  to  Mr.  Buck- 
land,  and  enquiry  was  made  why  they  had  not  already  appeared 
at  the  credi;  of  Green,  Brown  Si  Co,  Mr.  Hucklaod's  auswci 
of  the  Ist  of  January  diisavowed  an3'  interest  in  [18. 
these  drafts,  allhongh  not  in  very  explicit  terms;  but  when 
this  letter  was  exhibited  to  Mr.  Brown,  an<J  longer  conceal^ 
mcnt  was  impracticable,  he  admitted  the  incorrectness  of  hisr 


pr.vuM,.    afseriions.   and    r.u.h^^.d    ih:..    tlM.   ,lr.n>  lud  l.ern    ^ 
;,,K,„    „n  l..r    tl.v    private  accouot  of  M*".  SlarkwMllier  and 

"Tn   fx"t.Mnuaioi.  (.n.is   cnnrhtrt,    he    rrnuuKni  dial  tl.ey  had 
!,„,„  r.-rused    idl  jirr.unnuHlaiion    at  lUilUlo,  .m  llir  ^■rouiui  Ol 
iis   l,<i„.r  uivr;>  lo    Hrown  cV    IJiirUlaiul,   and  :.t    Nrv,   \  ..rk  K. 
(;,,,„    T>Pow.,  &.Co.-that  Hlo.n  of  si(),OOU    owi.    •     by  th. 
|,„..r\.>ilu>    ManhalUHi   Un.ik    had  been    (GUARANTEED  by  hw 
iVuM.d  li.   S.  Williauis,   and  ihar  more  drpcndenrc  wns  plnn'rl 
.,„'h,s   .Kinu'lhan   ontl.e    Com  • 'ercbd   siork  hypoMn-cay,  d  hv 
Ihr  firm.      Lraving    il  K.   beink«.nd    that    he  was  jiistihc-  ,m 
..,p,-opnMinu  the  money  of  (ireci  ,  Known  &.  Co.   becans.    ,.■ 
Juluurn    an    endorscMiient  on    one  of  their   habu.ties,  and  b.i 
uhich    ihcv    alone  u.ade  piovisio.tS      Mr.    Brown  a  so  .:onten- 
,1,„|   ,l,at  a   was    n  nuUler    oC  necessUV  to   protecUhe  drafts  of 
SwrKweaiher  c^  13rown,  bocaust  if  they  had  gone  back  protes- 
ted   it    woukl    have    beer,   disadvantageous  to    the    .Hlier  hnns 
with   which  he  was  cor/nocted.     The  fiui lily  <>f  this  reRsonmB 
u.s  con.mented  on   ai  length  in  a  Inter  to  Mr.  Hnckland,  19. 
.,r  the  lith  of  January,  which  Mr.  Green  conrludes   n.  th.   tol- 

hiwiiiL!;  words.  .        .  i  , 

•*i  bavpnnl    alluded    to   ihescftransaclion?  tn  any   shape  to 

Cu)t    Trusiolt,   beeanse    1    am   sure   they  wouhl    nillicl    pani, 

.n^U  and  disappointment  ;   and  as    1  rely   upon  arrangement. 

beii.g    made   at  Bufialo    to    repay   this    debt    and  the  uUerest 

uhicd.  it  has  cost  us,  as  soon  as  Mr.  Brown  arrives  there       am 

vvdling  that  the  subject  should  from  thence  forward  be  buutd 

in    total  oblivion.  -       <    i    ii     i  ..„ 

"  1  wish  10  have  no  concealment,  and  ihcrclo.c  1  shall  shiiW 

Ibis  letter  to  Mr.  Brown."  ,       ■       ,      ,  „..,,,,  m  Neiv 

It    may  he   proper  to    observe   that   n,    the   bedge    at   Neiv 
Vo  U,  wlich  iL  before  engaged  Mr.  Green's   •'."ennon      en; 
,.,,„earo,i  a  balance  of  about  |1H000  ,N  FAVOU  ot  &•"■"'=•' 
ii  B'own  ;  and  on  a  critical  examinatton  ,t  was  lonnd  to  p  o 
^ecd  iVo.r  Mr.    Rrown   having  transferred  §30,000    hon,  th 
Tccot.  tof  the   Commercial  Batik  of  Bnrtalo  to   the  eredtt  ol 
s'aZlather  a„c  hitnself.      Althongh  this  transfer  tntght  have 
lieei.  reasonably  objected  to,  on  the  ground  that  it  was  appro- 
i  >g  to  ,heiJ individual   a.lvaniage,  tneans  winch  were  prob- 
ity conceded  to  Green,   Brown   &  Co.  a.  large  stoeU.olde  s, 
the   account  was   sufl'ercd  to  retnain  n,  the  position  which   iH  ■ 
r„,v,  1  ad  assigned  to  it ;  and  Mr.  Green  <lid  not  brtng  e.ther 
cumstance  to' the  knowledge  of  Cap..  Trusc^ott  nn„l  the  lat- 
ter end  of  April,  when  itbeca.ne  evuleiil  that  Mr.  Brown  cotdd 
;iol  redeem  his  pledge  of  repayment. 


10 


ToroiiU^ 


I'J 


At  the  time  of  this  discovery,  the  bulancc  ;ii 
against  Hrowii,  Bucklaiul  h  Co.  and  Green,  Hrown  ikC.lo.,  m- 
flependenl  of  interest  and  profits  (or  nine  moDihs  ainoiiiil- 
ed  to  -  ~  -  -         .Vl^r).()()n, 

Being  permanent  capital  of  TruscoU 

8i  Green,  -  -  ^80,000. 

Their  own  floating  advances,         -         49,000. 

Additional  advances  made  by  Mr.  Dunn 

of  iiis    own    free   will,  for  which  Trus- 

cott  h  Green  gave  their  promissory  notes 

12  months   after   date,    and  uame  under 

other    engagerr -nts,  they    now    abstain 

from   repealing,  -  -  -  50^000. 

At  a  subsequent  period#Green,  Brown  &l  Co.  hypotliLMa- 
ted  with  Mr.  Dunn  certificates  of  stock  in  the  Bank  of  [20. 
Washtenaw  for  ,^"55,000,  without  any  application  or  claim  for 
security  on  his  part:  it  was  Mr.  Green's  wish  to  have  furnish- 
ed Commercial  slock  as  a  preferable  security,  but  Mr.  Brown 
alleged  that  the  latter  was  useful,  and  could  not  be  dispensed 
with  for  raising  temporary  loans  at  New  York. 

On  the  17th  of  March  a  remittance  was  received  from  Mr. 
Dunn  amounting  to  .f  17,817^  33  with  instructions  to  purchase 
excl  ange  on  London  at  8  premium  ;  but  as  .heexclianj^e  of 
the  day  was  then  10,  he  was  instJHitly  apprised  of  the  inability 
of  Green,  Brown  h  Co.  to  comply,  and  of  their  having  placed 
the  amount  at  his  credit,  ad  interim. 

Mr.  Dunn  did  not  immediately  notice  this  communication, 
but  he  ultimatelv  approved  of  what  had  been  done,  and  re- 
peated his  instructions  to  remit  at  106— which  was  found  to 
be  unattainable. 

When  Mr.  Green  left  New  York  on  the  13ih  of  April,  [21, 
Mr.  Brown  placed  in  his  hands  a  statement  of  real  property 
jointly  belor.gingto  himself  and  Mr.  Starkweather  at  Bullalo- 
and  in  which  its  value  was  estimated  at  $385,000,  producing 
an  annual  rent  of  |12,020,  and  an  increase  in  perspective  of 
|7,200,  at  the  foot  of  this  (Jocument,  subscribed  by  Mr.Brown, 
he  wrote,  "Mr.  Dunn,  having  in  our  hands  a  conside.  ./ole 
amount  of  money,  1  would  suggest  that  security  on  the  above 
mentioned  prcperly  in  addition  to  what  he  now  holds,  bo 
offered  him,  and  if  agreeable  to  him  to  accept  it,  Starkweather 
&t  Brown  \.ill  at  once  execute  to  him  the  necessary  papers." 

No  doubt  Mr.  Brown  foresaw  that  the  pressure  of  the  lime 
would  cfleciually  prevent  him  from  paying  the  balance,  then, 
about  .<iHGl,000,'  owing  to  Green,  Brown  &t  Co.  ;  and  there- 
fore he  was  anxious  that  slcuritv  should  be  accepted  in    beu 


1^ 

of  money,  and  hi.  !oUr,s  of  .ho  27th  &.28ih  ^'' ^P'"''   l,;;^^.^^ 

Mr'  StarkweaUuM-'^  hesitation  to  concur;  and  on  Al..  Uretn- 
; !  :.r  o  New  York,  tnuler  the  apprehension  ot  n-reaMng  d.l- 
lilule:  he  wrote  to  Mr.  Dnnn,  and  again  oi  ts  own  vo  nnta  >^ 
art  cnc  osed  certificates  of  Commercial  Bank  stock  '  •^'  ' 
(,0U  a.  additional  coUalteral  security  ;  and  havn.g  le.d  n 
.  '.rthis  letter  in  Mr.  Brown's  presence  he  commUet 
,o  his  charge  Cor  delivery,  cons.dermg  .t  prohable  that  AH. 
Dunn   might  arrive  .luring  his  own  ab.ence^ 

On  the   same  day,  that,  is  on   the  3d  ot   May,   Mi.    l;iioMi 
...  ddressed  himself  to    Mr.  Starkweather  urging  Mum   to 

;;;;2:-?^^:;.:r;l  o^,  b*.,.  .'c,..  w,,.,,  ..  .h>  .. 

lunvevcr  .nti.ipn.e,  U  would  be  occasioned  by  the,,-  uka>  ^ 
X  ^Mri,'«;   FOR  St  vRKvvEATHER  &  Brown. 

"U^as  proposed  U,at  M,-.  Gre..,  should  bave  been  t  e  be.,..- 
,„•  .bis  .CMC 'to  Buffalo,  wbe,-e  olbe>  busn.ess  ,-.-qu,  «     u   P    ; 
sence  •  but  when  ready  lo  depart,  th,s  tntportant  lettei  was  not 
be  found  ;  and.  teaHul  o,  so.ne  lur.her  ;1.^-1'-", "-"«,?      .' 
tise<l,  Mr.  Green  wrote  to  Mr.  Dunn,  un   h,s  ""  -^' ;^^",^>^- 

and  .onjured  bin,  no.  to  u,ake  any  »'"•"""=■' '°f''','^';e,od 
.■on.emolaied  un.il  it  was  seen  whether  he  was  amply  seen. in 
rnr'p'to'  advances  :  Mr.  Dunn  received  .his  timely  warn.ng, 

^„,::rd'^,h^l.in■ie.L;^VMr.Sta,.hweather^ 
a,Kl  on  the  O.h   Mr.  Green  arrived  at  Buffa b,  "^.^t   wo  hours 
ft  r  the  banks  had   been  closed  by  n.junct.on,  wh.      def      ed 
,be  object  of  his  mission,   and  by  leav.ng -o..  '  »       ^  J^^'J;;^'^ 
an.ount  of  inconver.able  bank  paper,  cons.,tuted  anothe.  sou.ce 

ol   alarm.  „c  ii,„    nndersiened  hastened  to 

Thus  circumstanced,  both  ol  ""^ , ""'" ;'f.'S'"  ,  „  .  ,„j  „ 
^!,.w  Vo-k  where  they  ar.ived  on  the  loth  of  May  ,  and  »s 
Mr  Dunn  had  a  eady  sailed  for  EngUu-d  the  day  prev.ous  .t 
w  ;  ",    ,:"  practicable  to  substitute  ..her  -ount.es  or    ho  e 

„e  had  takl.  w'i.h  him  •  ami  ^;^ ^Z^:«'^otZ. 

der   heavy  acceptances  about  tailing  out,  mi    l» 

ed,o"rant  bonds  and  mortgages  to  the  "■h'"'-'^"™'   '  Z'™; 

siderafL,  of  his  own  and  Mr.  S'^"-k»-"'7.;."'''  j^.f  the"  ac 
.he  nurnose  of  bcin?  assigned  to   the  parl.es  hold.ng  me  ac 
pttLf  Green,  Brow.fs.  Co.     This  ar..auge.ne.,    was  el- 
rec'ted  sofar  asMr.  Brown's  interest  was  -c--!  ''^^^ '^l'';, 
iug  a  bond  a..d  mortgage  tor  |7.3,1.i..,  bui  ni..  ^. 


13 


.-f 


*ii) 


refusing  to  concur  in  if,  iliey  subsequpntly  gnvc  tlioir  joint 
boiuls  and  mortgages  for  the  reduced  sum  of  ^^42,531  47  ;  and 
the  former  itKHjmplt'tc  mortgage  was  discharged  from  the 
record. 

The  suspension  of  cash  payments  in  llie  states,  and  the 
determination  of  Sir  Francis  Head  that  the  banks  in  Upper 
Canada  should  pay  out  -'their  h\st  shilling"  rather  than  pursue 
the  same  policy,  would  have  required  extraordinary  exfrtions 
on  the  part  of  the  undersigned,  even  if  they  had  been  tintratn- 
melled  by  other  causes;  and  although  Mr.  Buckland  afford- 
ed them  very  effective  co-operation  they  were  for  a  time  ap- 
prehensive of  the  worst  results. 

in  the  meanwhile,  all  confidence  had  ceased  in  Mr.  Brown; 
and  it  having  become  im|:^rative  that  he  should  retire,  Mr. 
Buckland  [25]  wrote  on  the  I  hh  of  May,  ''In  reference  to 
Brown's  withdrawing  from  the  concern,  i  have,  after  consulting 
Esien,  concluded  that  the  best  way  would  be  for  me  to  send 
my  power  of  Attorney,  which  1  accordingly  inclose,  although 
I  entertain  no  doubt  that  he  will  do  so  without  legal  course." 
Prior  to  making  this  demand  upon  Mr.  Brown,  it  was  de- 
sirable to  arrive  at  some  pecuniary  settlement,  in  which  the 
remuneration  to  be  made  by  him  and  Mr,  Starkweather,  for  the 
use  of  Green,  Brown  h  Go's,  fands,  should  bear  some  propor- 
tion to  that  which  he  had  paid  other  parties  at  their  expense. 
For  instance,  Mr,  Brown  had  borrowed  at  New  York  be- 
tween the  18th  of  July  and  31st  of  December  1836  a  sum 
averaging  per  diem  $18,700  ;  and  the  interest  paid  upon  this 
sum  was  charged  to  Green,  Brown  &;  Co.  and  averaged  4  per 
cent  per  month.  On  the  other  hand,  the  sums  withdrawn 
for  Starkweather  &,  Brown's  private  account,  between  the 
16th  of  May  and  31st  December  1836,  averaged  $36,332 
per  diem — and  therefore  it  was  proposed  to  charge  them  at  the 
rate  of  3  per  cent  per  month,  being  1  per  cent  less  on  the  larger 
sum  than  had  been  actually  paid  on  the  lesser,  or  $18,700. 
Mr.  Brown  would  not,  however,  accede  to  these  terms ;  but 
consented  that  a  third  party,  unacquainted  with  the  circum- 
stances should  state  generally  the  value  of  money,  well  se- 
cured, during  the  foregoing  period  j  and  his  opinion  was  that 
legal  interest  should  be  charged  from  the  16th  of  May  to 
the  1st  of  September  1836,  and  two  per  cent  per  month  for 
the  subsequent  period,  which  was  accordingly  done  ;  and  on 
the  2nd  of  June  1837,  Mr.  Brown  signed  the  accounts  on 
[26  27]  behalf  of  Starkweather  k  Brown,  recognizing  the  bal- 
ance then  owing  to  Green,  Brown  h  Co.  of  $59,683  69. 
Against  th'.s  balance  collatterat  secu- 


V 


13 


liiv    i)V   niorigngp  _.  15 dlvf-n  given 


»» 


be- 


as  a 


$42Jy?A  47 


'flS 


Ami  il  was  agretd  tlia»/  tl;ey   stioiild 

provide  against  a  further  *:laim  Irom 

the  same  quarter  for         -         -        15,675  00. 

Having   arrived  at  this  uiiderstandinjj,   Mr.    Brown   w: 
required  to  reiire   from   ifif  Finn  ;  and,  oil  ihe  7th  June,  he 
addressed  the   following  letter  [28]  to  the  undersigned. 

"  I  am  desirous  of  withdrawing  from  the  firms  of  Green, 
Brown  k.  Co.  and  Brown,  Buckland  &  Co.  and  of  having  the 
affairs  closed  up  with  as  much  dispatch  as  our  mutual  interest 
will  admit  of,  and  so  soon  as  I  can  conveniently  prepare  a 
distinct  proposition  to  that  effect,  and  submit  to  you  the  terms 
upon  which  I  would  feel  willing  to  place  the  whole  business  in 
your  hands,  il  is  my  intention  to  do  so.  In  the  meantime  I 
will  refrain  from  undertaking  any  new  liabilities  for  either  firm, 
except  with  the  written  consent  of  at  least  one  other  member 
of  the  concern,  and  you  have  my  consent  to  proceed  to  col- 
lect the  outstanding  debts  due  us  and  to  pay  and  discharge 
our  liabilities,  so  far  as  our  means  will  allow.  It  is  expected 
however,  that  no  important  transaction  shall  be  entered  into, 
without  my  being  previously  consulted."  While  these  nego- 
ciations  were  going  forward,  Mr.  Buckland  wrote  [30]  to  Mr. 
Green,  under  dale  of  the  26th  of  May,  as  follows  : 

"  I  regret  to  learn  that  you  experience  difficulty  in  settling 
with  Brown.  The  interest  and  commissions  as  stated  by  you 
I  consider  undek  the  circumstances  very  moderate.  As 
to  Brown  stating  it  was  with  my  approbation  this  was  done,  is 
absurd.  At  the  time  he  told  me  that  the  $30,000  was  cred- 
ited to  him,  (Commercial  bank  money,)  *  remonstrated,  but 
ultimately  fell  in  with  his  views,  inasmuch  as  the  bank  had  no 
lien  upon  us,  and  he  said  that  he  had  used  the  credit  of  all 
his  friends  for  us.  On  the  subject  of  assuming  William's  ac- 
count, there  never  was  a  word  passed." 

"I  do  not  see  ?)ow  you  are  secure  now  with  a  Hen  of^'30,- 

000  before  your  mortgage,  held  in  the  shape  of  a  judgment 
by  Commercial  Bank.  Again  it  is  almost  impossible  to  seta 
correct  value  on  the  I  1-4  acre  on  Court  Street.  I  would  not 
give  $20,000  for  it  in  tStcse  times;  however  Starkweather  U 
Brown's  bond  for  what  they  owe  us  could  be  collected,  but 
that  being  only  executed  by  Brown,  and  the  debt  to  G.  B.  il 
Co.  being  due  by  S.  &i  B.  I  much  doubt  whether  Browo*8 
bond  could  enable  us  to  collect  more  than  his  half  of  the  debt. 

1  trust  you  will  get  from  him  an  admission  of  S.  &i"  B'l.  debt  to 
G.  B.  &  Co. 


14 


lO 


igam   ou  tlie  ];;lti 


„.,.,,, .,lli  of  June,  M,  i^l^j'^'ann  writes  f;3l]  ''As 

to  Brown's  not  liaviiig  autlioiiiy  to  sitV°^.^-  &.  B.  il  is  himi- 
bug  and  a  nitre  gel  off.  He  nuin  »»  iVe  become  very  seru- 
pulousall  ai  once.  You  are  jusiiaed  in  holding  any  security 
vou  caH  touch  in  this  instance,  and  it  wss  my  intention  not  to 
eive  up  the  deed  executed  by  Brown.  Starkweather,  al  the 
request  of  L'rown,  applied  to  me  for  it  some  days  ago.  l» 
which  I  answered  that  il  should  be  sent  to  New  York,  and  lhi.< 
I  shall  do  by  Hensleigh.  It  cannot  however,  be  recorded  un- 
til acknowledged." 

Also,  on  the  13ili  of  June,  Mr.  Buckland  remarks  [32 
•*  Brown  arrived  here  yesterday,  and  seems  most  anxious  tu 
close  up  every  thing,  and  I  firmly  believe  he  will  do  so  ecpiita. 
blv  and  honorably,  notwithstanding  the  late  diflkulties.  Be 
assurred  that  tioihing  shall  take  place  here  unless  strictly  so, 
and  this  i  know  has  been  always  your  aim  and  sole  object  in 
every  transaction." 

"Brown  stales  that  having  obtained  the  security  upon 
uhichwe  kepi  up  large  loans  and  upon  which  he  could  have 
got  the  money  as  well  for  S.  &  B.  as  for  us — and  that  part 
of  the  credit  he  pot  ought  to  have  been  for  S.  &  B.,  he  con- 
ceives, after  paying  us  commissions,  &,«'.  no  person  can  com- 
plain of  his  conduct.  Be  this  as  it  may,  it  "lill  be  more  t» 
the  interest  of  ill  parties  to  wind  op  quietly  if  we  can,  and 
make    no    uppearance  of  dissolution    untii*    we    aue    I'Ri:- 

PARED." 

Some  days  before  Mr.  Brown's  return  to  Buffalo  a  large 
amount  of  unmatured  bills,  and  others  in  suit,  had  been  dis- 
counted al  Toronto  and  placed  to  the  credit  of  Brown  &, 
Buckland  j  the  chief  motive  for  this  proceeding  was  to  place 
such  securites  out  of  the  reach  of  Mr.  Brown,  and  the  event 
will  shew  how  justly  suspicions  were  entcriained  ;  but  there 
was  another  consideration,  although  a  minor  one,  which  was 
to  increase  the  amount  of  bills  discounted  al  Toronto,  and  di- 
minish the  sums  owing  in  account — the  sum  total  would,  in- 
deed, remain  unaltered,  bul  the  composition  oi  the  account 
would  be  improved  iu  public  estimation  whenever  a  statement 
should  be  required  by  the  provincial  legislature. 

Nolwilhslanding  Mr.  Buckland's  assurance  that  *i  shall 
take  care  of  our  affairs  here,  [33]  and  keep  them  in  my  con- 
irol,"  it  would  seem  that  Mr.  Brown  soon  resumed  his  won- 
ted influence  over  him,  and  gradually  undermined  his  belter 
resolulions.  Representations  were  now  made  to  the  under- 
signed of  the  losses  which  must  be  sustained  in  winding  up 
the  affairs ;  they  were  told  of  the  open  avowal  of  drawers  aitd 


1 


16 

eudorsrrs  of  bills  lo  avail   themselves  of  U»p  tww  usury  law, 
unil  gel  rid  of  thfir  liabililies  al  any  tlittlictjon  of  priuciple-— 
aiu!  hence  the  necessity  of  leaving  Mr.  Brown   to  cope   ^»th 
them  ;  thus,    negociaJons  were    opened  for  his  assuming   the 
entire  affairs  of  Green,    Brawn   &  Co.  and  Brown,  Buck  land 
&    Co.;  and   whilst  they   were    in    progress  he  prevailed  on 
Messrs.  I.  C.  P.  Kslen  and  J.  W.  Bnckland,  under  whose  joint 
inanagemenl  l!ie   business  at  Buffalo    had   been  conducted,  to 
withdraw  from  Messrs.  Stanley  &i  Talcoli  and   S.  G.  Austin, 
the  whole  of  the  bills  which  ha^d  btcn  placed  in  their  custody 
for  account  of  the  Agricultural  Bank,  and  which  they  had  been 
carefully  instructed  to  surrender  only  upon  the  separate  acquit- 
tance of  these  two  gentlemen,  and  not  in  the  name  of  the  firm. 
Ti>e  pretence    avowed    to  Mr.  Esten  for    this  withdrawal  was 
Mr.  Brown's  wish  to  inspect  the  bills,  so  as  to  advise  what  por* 
tion  should  he  renewed,  secured,  or  otherwise  left  in  suit ;  but 
havine  once  obtained  possession,  he  refused  to  restore  them  to 
Messi's.  Talcotl  h  Austin;  and  assigned  as  a  reason  for  keep, 
ing  them  wnder  his  own  lock  and  key,  that  instructions  had 
beerj  sent  to  New  York  to  close  the  office  and  remove  the  books 
tu  Toronto  wilho'.t  consulting  him. 

To  this  ;»lIegaiion  it  may  be  answered  that  Mr.  Brown  was 
virtually  expelled  by  the  terms  of  the  Partnership  Deed— that 
the  reservation  made   in  his  letter  of  the  "Tth  June,  as  to  his 
being  consulted  on  imporlanl  transactions,  was  defined  by  him- 
self, as  touching  l!ie  sale  ofbank  stock—and  that  Mr.  Buckland^ 
had  granted  to  the  undersigned  full  powers  to  act  in  his  beha.L 
—so  that  without  reference  to  the  truth  or  fallacy  of  the  asser- 
tion, It  must  be  admitted  that  they  njight  lawfully  have  exer- 
cised such   a   discretion;  and  when  it   is  recollected   that  the 
expense  of  maintaining  an  office  at   New  York  was  excessive, 
and  that  no  business  remained  to  be  transacted  there,  which   a 
professional  man  was   not  belter  (pialified  to  discharge,  they 
might  have  justified  themselves  by  the  expediency  of  the  mea- 
sure.    The  office  was  however  kept  open  at  New  York   until 
the  9th  October  ;  and  after  having  deprived  themselves  of  the 
valuable  services  of  Mr.  Hensleigh  at  Toronto  for  four  months, 
it  is  scarcely  credible  that  Mr.  Brown  refused   to  make  any 
allowance  to  that  gentleman  for    his  expenses   at  New  Wk, 
alleging  that   he  had   been  of  no  use  to  Green,  Brown  &  Co., 
although  he  had  previously  grounded  his  defence  for  retaining 
the.e  bills,  on  the  presumption  of  Mr.  Hensleigh**  departure  in 

"whe«i  Mr.  liiien  communicaled  the  deception  which  had 


16 

Jieen  practised  on  him.  Mr.  Green  was  absent  from  Toronto  ; 
lull  having  .irrived  there,  on  the  29ih  .Tuly,  il»c  undersigned  left 
Jhesamc  day  in  company  with  their  legal  adviser,  inlendifjg  to 
enforce  their  just  rights  for  the  recovery  of  the  b'.Jts,  and  take 
proceedings  at  \^w  against  Mr,  Brown:  however,  on  reaching 
Bnfi'alo,  amicable  overtures  were  made  to  them  through  Messrs. 
Eslen  &:  Bnckland,  which  induced  ihem  to  become  parties  to 
an  agreement  nnder  dale  of  tlie  30ih  July  [34]  wherein  it  was 
covenanied  that  Mr.  Brown,  with  two  other  responsible  persons, 
*shouhi  grant  a  Bond  of  Indemnity  to  the  unrlersigned  against 
all  debts  due  by  Green,  Brown  &,  Co.  at  New  YurU,  and 
Brown,  Bnckland  &  Co.  al  Buffalo  ;  and  that  for  a  considera- 
tion, which  was  then  understood  as  amounting  to  about  .^41,- 
879  60,  Mr.  Brown  should  •*  give  unquestionable  security 
on  real  estate  for  payment  to  the  said  George  Trnscolt  &  John 
Cleveland  Green,  of  the  sums  due  J.  H.  Dunn," 

being        -  -  -  - 

"  Messrs.  Prescotl,  Grote  &iCo.'*  being 
**  G.  Trnscott  k  .1.  C.  Green,"  being  (or 

Advances  and  interest  thereon,     $151,308  32 

but  which  was  reduced  according 

to  tlie  original  underst->nding  of 

the  above  agreement  in  the  sum 

of  .         -         ^41,879  50 

luid    br   subsequent 

demands,  -  14,257  23 

togeiher,      .         -         ,         • 


$18,261  83 
22,618  85 


66 J  36  73 


Thus.reilucing  the  balance  to 


96.171  69 


.\nd  making  a  total  of        .        -        -         -        $136,072  27 
**  payable  %viihin  five  years  with  interest  al  the  rate  of  seven 

percent,  per  annum  payable  thereon  half  yearly.'* 

Until  an  adjustment  Vould  be  effected  on  the  foregoing  basis, 
it  was  agreed  that  the  bills  and  securities  should  remain  in  the 
vaults  without  prejudice  to  the  rights  of  any  party.  However, 
regardless  of  this  understanding,  Mr.  Brown  took  with  him  to 
New  York  the  greater  part  of  them,  and  either  removed  the 
remainder  from  the  office,  or  placed  them  under  seal  in  the  pri- 
vate custody  of  Mr.  Bnckland.  Therefore  on  the  26lh  August 
[35]  the  undersigned  wrote  to  Mr.  Brown  that  "  unless  these 
effects  are  restored  immediately  to  Mr.  Eslen,  who  enjoys  our 
confidence,  and  who  will  pledge  himself  as  to  the  appropriation 
of  the  proceeds,  we  shall  no  longer  delay  issuing  a  public  notice, 
setting  forth  the  fraudulent  manner  in  tvhich  the  notes  and  secu- 


17 


rilii's  have  been  abstracted,  and  we  shall  serve  a  special  notice 
on  ever^  person  indebted  to  ibe  firms  of  Green,  IJrown  &t  Co, 
and  Brown,  Buckland  &  Co.,  and  enjoin  ihem  from  paying 
over  any  money  whatever.  VVe  shall,  at  the  same  lime,  an* 
nounce  the  dissolution  ol  partnership,  and  shall  proceed  to 
New  York  to  submit  our  affairs  to  Messrs.  Thomas,  Wilson  & 
Co.  and  Messrs.  Brown  &i  Brothers,  and  our  principal  creditors, 
and  be  governed  by  their  opinion  in  making  an  assignment,  or 
applying  to  the  Chancellor  for  a  receiver." 

To  this  letter  Mr.  Brown  replied  on  the  2nd  September,  [3G.] 
bv  inveighing  in  general  terms  against  the  'pecuniary  weakness' 
of  the  Agricultural  Bank,  as  if  that  weakness  were  not  attri- 
butable  to  his  acts— and  of  the  *'  deception  practised  ob  him  a» 
to  the  extent  of  means"  at  command,  as  if  those  means  had  fal- 
len short  of  the  partnership  agreement,  instead  of  being  actu- 
ally raised  from  $'80,000  to  $a 7 3,927  17,  or  independent  of 
Mr.  Uffnn,  to  |1 17,927  17  !  Such  was  the  language  of  the 
man,  who  had  advanced  no  ,apital,  who  bad  used  that  of  his 
partners  in  violation  of  the  most  solemn  obligations,  and  who 
now  added  insult  to  treachery. 

Al  this  juncture,  Messrs.  Esteu  and  Buckland  again  inter- 
posed, and  by  their  joint  influence,  the  contending  parlies  fell 
back  on  the  original  agreement  of  the  30ih  July.  In  discuss- 
ing the  basis  recognized  by  it,  Mr.  Brown  contended  that  the 
clause  reUasing  him  «  to  the  amount  of  $30,000,  together  with 
Utc  amounts  charged  for  profit  and  interest"  should  be  con- 
strued to  extend  beyond  the  existing  partnerihip,  and  should 
equally  elVect  profit  and  interest  on  a  former  partnership  fnially 
closed  !  Having  gained  this  point,  he  next  disputed  his  obli- 
gation to  take  op  all  the  returned  bills,  which  bad  been  pur- 
chased, drawn  or  remitted  for  account  uf  Green,  Brown  &  Co. 

and  this  concession  to  bis  demands  entailed  a  further  loss 

upon  the  undersigned,  forjuing   the  aggregate  sura  of  $56,- 

136  73.  .  I       .      ^ 

The  papers  and  agreements  were  then  placed  ui  the  hands  of 
Mr.  J.  U  Talcott,  in  order  that  the  articles  [37.]  of  dissolution 
and  the  bond  of  indemnity  [-^S]  nfight  be  drawn  up  in  legal  form; 
the  date  of  the  I5th  September  was  assigned  to  them,  but  they 
were  not  executed  until  a  hUer  period,  in  consequence  of  Mr. 
Starkweather's  refusal  to  sign  the  bonds  which  had  been  pre- 
pared to  accompany  the  morlages  to  the  undersigned. 

When  it  was  found  that  all  arguments  were  unavailing  with 
Mr.  Starkweather,  it  became  more  imperative,  in  the  es  tima- 
tion  of  the  undersigned  to  obtain  a  difeinleiesled  valuation  of 


.1 


18 

{he  property  j  mid  llierdore  iiisirudioiis  were    given  to    Mr, 
Kslcu  in  the  following  words:  ,       ,, 

''  It  is  proposed  to  lay  the  bonds  and  mortgages  lendert-d  l»y 
R  S.  Brown  before  the  Agents  of  the  Ohio  Life  and  Trust 
(Jo.npanv  at  Buffalo,  and  request  them  to  certily  whether  ihev 
funslder'  them  as  unqueaionabio  security,  according  to  the 
terms  of  the  agreement,  for  $13G,0G1  :  and  if  not,  what  is  lur- 
ther  required  to  make  the  security  unquestionable.' 

xMr,  Esten  and  Mr.  Brown  then  consulted  together,  and  sub- 
mitted the  following  letter  [39,]  to  11.  B.  Totter,  Esq.,  as  the 
Agent  of  the  Trust  Company  : 

"  Buffalo,  30lh  September,  1837. 

H.  B.  Potter,   Esq.  e    /^        » 

"  Dear  Sir,— In  the  purchase  of  Messrs.  Irnscott  &  Orcen  s 
interest  in  the  firms  of  Green,  Brown  h  Co.  and  Brown  Buck- 
land  &  Co.,  there  is  a  balance  agreed  upon  in  their  f^vo**."*^ 
,^M 3(3,061,  for  which  amomit  R.  S.  Brown  has  agreed  0)  give 
♦unquestionable  securitv  upon  real  estate.'     In  pursuance  ot 
which   lie  has  executed 'his  several  bonds  with    accompanying 
mortgages  (which  mortgages  are   also  executed  by  R.  Stark- 
weather,) njortgaging  the  several  parcels  of  land  referred  to  iti 
the  certificates  herewith  submitted  ;  which  parcels  of  land  are 
subject  to  an    aggregate  incumbrance  of  .$•13,000.     He  also 
gives  a  covenant  a^rainst  ail  incumbrances  executed  by  himseU 
and  two  other  persons  of  undoubted  responsibility.     You  w»ll 
be  pleased  to  advise  whether  you  consider  the  above  mentioned 
property  with  liis  bond,  unquestionable  security  for  the  said 
sum  of '$*  130,061. 

Respectfully,  vours, 

(Signed)'    R.  S.  BROWN, 

J.  C.  P.  ESTEN,  Agent 
for  Messrs.  Truscoil  &i  Green." 
[40.]     "  iluvFALo,  September  30tb,  1837.^ 
»*  Gentlemen,— In  reply  to  the  question  propounded  to  me  iit 
yowr  statement  within,  I  would  state  that  1  have  examined  the 
certificates  of  valuation  and  other  papers  submitted,  and  have 
no  hesitation  in  expressing  my  opinion  that  the  psrsonal  secu- 
rity therein  mentioned,  together  with  mortgages  executed  or  to 
be  executed  b>  IMr.   Brown  and   Mr.  Starkweather  upon  the 
several  parcels  or  lots  of  land  briefly  described  in  said  certifi- 
cates,  is  ample   and  unquestionable    security  for  the  sum  of 
S' 136,061.  Respectfully,  you''  obedient  serv'r, 

^  '     (Signed)         H.B.  POTTER. 

Messrs.  R.  S.  Brown  &i  J.  C.  P.  Esten." 

(Fur  ihisopiuiou  Mr.  Ei^ten  allowed  Mr.  Poltu-in  fey  of  $50.) 


11) 


G.  O.  PALMER, 
P.  n.  PORTER,  Jr. 
K.  JOHNSON, 
H.  K.  SEYMOUR." 


Ccrtiticalcs  referred  M  in  tlm  prfice«!i»g  lotMr. 

1.  Tliese  ccrnty  [M.J  tlif»l  wo  bolli'vti  the  cash  vuliie  of  a  lot 
of  ground  belonging  to  ;\Jesa»a.  P'lirkwoijtitcr  t.  iJiowjij  sa'hI  to 
co;»(a*in  abou:  forty  itct  iVoiit  :n,tl  one  liUiHii'.l  aiJiJ  f:!"(«,-Oil  f«:et 
dfcp,  located  in  this  chy  oo  the  vast  ^;i{le  of  Washington  street, 
dircrtly  iu  rear  of  the  Farmers*  Hotel,  to  be  iliree  hundred 
dollars    per  foot  front. 

Bui'i'Ai.o,  October  li-th,  IRoO. 

(Signed) 
HIRAM  PRATT, 
L.  F.  ALLEN, 
J.  W.  CLARK, 
CEO.  LEACH, 
PIERRE  A.  BARKER, 

I  do  not  profess  to  have  a  knowledge  of  the  value  of  the  pro- 
perty above  mentioned,  but  I  have  great  confidence  in  the  judp- 
meal  of  the  gentlemen  whose  signatures  are  hereto  signed. 

(Signed)        ISAAC  S.  SMITH. 

2.  We  certify  [42.]  that  we  are  acquainted  vriih  the  lota- 
tion  of  the  property  herein  described,  and  believe  the  sums  af- 
fixed to  each  to  be' a  fair  valuation,  not  considering  the  present 
depressed  stale  of  the  monied  afluirs  of  the  country. 

Lots  No.  147  and  148,  fronting  on  Court  street, 

conlaitiing  I  1-4  acres,         >.         -         -         - 
Lot  known  as  the  Niagara  Hank  property,  being 
60  ft.  on  Washington  and  extending  through 
to  EUicott  street,  .         -         -         - 

Buffalo,  September  15tli,  1837. 

(Signed)        .IS.  TROWBRIDGE, 

PIERRE  A.  BARKER, 
H.  B.  POTTER, 
JNO.  L.  TALCOTT. 

3.  We  certify  [43.]  that  we  are  acquainted  with  the  loca- 
tion of  the  property  herein  described,  belonging  to  Messrs. 
Starkweather  and  Brown,  and  believe  the  prices  aftixed  to 
each  piece  or  parcel  to  be  a      r  valuation. 

Lot  on  ^Seneca  street,  being  40  feel  front,  and 
60  feel  deep,  with  two  stores  thereon,  renting 
at  .'^12,00t  per  aunuaj,         -         -        -         - 

Lot  on  Commercial  sireet,  being  22  1-2  feet  front, 
with  store  thereon,  renting  at  ."pSOO  per  annutn, 

Lot  on  Franklin  sireet,  being  63  feet  front  and 
115  feet  deep,  located  nearly  in  front  of  K. 


^50,000 


50,000 


^17,000 
11.000 


30 


•II 


Johiison*t  collage,  vacant, 


5,000 


$33,000 

RuFrALO,  Sept.  15tJ»»  1837.  « 

(Signed)        PIFRUE  A.  BARKER, 
H.  B.  POTTER, 
JS.  TROWBRIDGE. 
On  receiving  the  foregoing  letters  and  certificates  Mr.  Green 
transmitted  copies  to  bis  partner  at  Toronto  ;  and  placing  un- 
limited confidence  in  the  professioual  judgment  of  Mr,  Potter, 
he  consented,  on  the  2nd  October,  to  execute  the  articles  of 
dissolution  of  the  prior  date  of  the  15tli  September,  upon  the 
explicit  understanding  that  if  the  undersigned  George  Truscott 
should  not  concur,  then  the  execution  of  the  papers  by  himself, 
R.  S.   Brown,  and  J.  W.  Buckland,  should  be  of  no  effect. 
They  were  then  deposited  in  the  custody  of  Mr.  Talcolt,  who 
made  a  written  memorandum  for  his  own  guidance  in  this  re- 
spect; and  who  also  took  charge  of  the  following  schedule, 
which   stipulated  on  what  conditions  the  various  bonds  and 
mortgages  were  to  be  delivered  up,  vii ; 

**  Schedule  of  mortgages  [44]  to  be  deposited  with  John  L. 
Talcolt,  and  to  be  applied  as  hereafter  specified,  whenever 
Capt.  Truscott  has  notified  his  assent  to  the  articles  of  Agree- 
ment, execnied  this  day  by  J.  C.  Green,  J.  W.  liuckland  mid 
R.  S.  Brown,  vii: 
Mortgage  No.  1,  on  1  1-4  acre  in  Court  street, 


M 


tc 


e» 


tc 


i< 


(( 


to  be  delivered  to  J.  K.  Donn,  on  his  giving 
up  140,000  Commercial  Bank  stock,  held  by 

him. 

Mortgage  No.  3,  on  the  Niagara  Bank  lot,  on 
Washington  street,  '  *  '. 

Mortgage  No.  4,  on  two  brick  stores  in  Main 
street,  as  collateral  security  for  ^13,000  to 
be  delivered  up  to  J.  C.  P.  Estcn,  on  his  giv- 
ing up  the  notes  and  securities  enumerated 

overleaf. 

Mortgage  No.  5,  on  Washington  street,  in  rear 
of  the  Farmers*  Hotel,  for  •         »        - 

to  be  delivered  tip  to  J.  C.  P.  Esten,  on  the 
return  of  $9,500  Lumbermen's  Bank  notes. 

Mortgage  No.  6,  on  lot  on  Seneca  street,  for 
do  «    7,     do        Commercial  street, 

to  be  delivered  up  to  J.  C.  P.  Esten,  on  the 
return  of   ^^'24,300  Commercial  Baulb   stock 
with  Prescott,Grcte  &  Co. 


$20,000 
20,000 


50,000 


10,000 


!  5,000 
10,000 


M 


} 


31 


} 


Morlgajxo  No.  8,  on  Irti  in  Fr anUrm  sirocl,  for 
to  lie  .|<?livcrL'cl  up  to  J.  C.   I*.  Estcn,  on  the 
return  ni'  Phel|,s,  Dodge  k  Co.'s  and  J.  R.  St. 
Joliu's  nutes. 


ri,or»i 


$130,001 


75 


Phelps,  Dodge  &,  Co.  on  Phelps,  James  S&  Co., 

lOlh  March,  1837,  for  £1,000  sterling. 
J.  R.  St.  John  &  Co.  on  T.  Wilson  &t  Co.,  9lh 

March,  1G37,  for  jCSOO  sterling.  „„^„r,./ 

(Signed)        R.S.  BROWN, 
J.C.  GREKN. 
Rills  and  secnrtlies  deposUed  with  J.  C,  P.  Esien. 
No.  2183,  a  94.  L.  D.  &t  H.  Howard's  notes,  for      $4,835 
2195,  April   6.    Stevens  h  Co.*s  note,  on 
which  $2,000  lias  been  re- 
ceived, 
11.  J.G.Dickie. 
22.  M.  Q.  Wood, 
19.  B.Burwell, 
8.  J.W.Clarke, 

June    1.  L.  A.  Spal<)ing} 

(Signed)  '    R.  S.  BROWN, 
^    *  J.C.GREEN." 

'?  It  is  to  be  borne  in  mind  that  Mr.  Dunn  had  advanced  for  the 
collective  benefit  of  the  firms,  -  -         $56,000  00 

Forming  a  portion  of  $173,927  17  standing  at 
the  credit  of  the  undersigned — that  be  was, 
also,  a  further  creditor  at  New  York  for 


2106 
2197 

2198 
2199 

2202 
2203 


(« 
cc 
t( 


cc 


cc 


3,000 

l,000i 
60 
5,050 
2,000 
2,500 
2,500 


18,281   83 


Making  a  total  of  -  -  - 

Of  this  amount  there  had  been  secured  to  Mr. 
Dunri,  on  other  property  and  effects,  indepen- 
dent of  the  Commercial  stock, 


$74,281   83 


28,281   83 


And  there  was  an  anticipated  balance  in  bis 
favor  of  about  $46,000 

which  it  was  contemplated  to  secure  by  bond 
and  mortgage  on  the  Court  street  lots,  as  re* 
cited  in  the  Schedule. 

However^  the  undersigned  George  Truscotl  declined  be- 
coming a  party  to  this  agreement  until  Mr.  Dunn's  formal  as- 
sent  to  it  was  obtained— and  although  the  latter  had  author- 
if.ed  Mr,  BidweU  to  express  such  [45.]  concurrence,  it  was  af- 
terwards withdrawiu  in  order  that  be  might  learn  through  oth- 


I 


Ml 


23 

♦T  cliAniiois  ilir  value  of  t!»c  property,  fof  which  ho  wiu  rcqiiireti 

lo  siirrtmlrr  $40,000 C/»n»tn';»c?.il  itook. 

This  rhai^f'e  of  purprjf ♦.»  w  a .  nut  .«'>  innrh  |o  he  deprecated 
as  the  Hfirensonnhle  (ft.hy  Mr.  OMnti  nan  gitilty  of  in  iwunrT  m- 
fill  il—aml  <lurlng  the  staiv  of  s'lspcMse  'in  uiiich  iu'  kf,pl  Ji'l! 
pariips,  IVJr.  lirowii  con!<n«!e<J  thru  the  cuiiHiu  I  svas  indepen- 
deol  of  him — and  wlielher  ihe  properlv  were  iti  reahtv  worth 
.«5,000  or  $-50,000,  »vns  xvlu.lly  irnriiaterial.     This    position 
was,  however,  utterly  niitiiiable,  for  the  agrt  ernetil  of  the  15th 
September  had  no  legal  existence,  owing  to  the  continued  refu- 
4al  ofthe  undersigned  George  Truscott— and  the  agreement  of 
the  30th  July  reqnircd   Mi.   Browii   to  give   "  nnqnestionable 
security  on  real  estate  r»'  nnd  it  was  the  well  founded  approhen- 
sio'i  of  this  fact,  which  alone  prevented  iMr.  Dunn  from  acced- 
ing  CO  the  subsequent  arrangements. 

fn  the  anticipation  that   Mr,   Dunn's   inquiries  would  elicit 
nothing  contradictory  to  the  certificates,  of  so  many  respecta- 
ble and  well  Informed  inhabitants  of  this  city,  the  inulersigned 
awaited  the  issue  without  suspicion,  and  stood  prepared  to  per- 
fect their  contract,     fn  this  stage,   Mr.  Brown  seems  to    have 
been  under  an  apprehension  that  the  mortgaged  property,  bc- 
louguig  to  him  and  Mr.  Starkweather,  would  be  taken  in  exe- 
cution on  a  judgment  obtained  by  the  Dry  Dock  Bank  ;  and 
influenced  by  some  consideration  of  the  kind,  he  wrote  a  letter 
to  Mr.  Esten,  the  agent  of  the  undersigned,  on  or   about  the 
27th  or  28th  October,  in  which,  after  'commercing   upon  tiu^ 
increasing  difficulties  of  his  situation,  he  observed  that  if  Capt. 
Truscott  was  only  withheld    from  executing  the   agreement  of 
the  15th  Septembe.,  by  reason  of  Mr.  Dunn's  refusal  to  deliver 
up  the  stock  until  he  had  satisfied  himself  of  the  adequate  val- 
ue of  the  mortgage,  hk  had  no  objection  to  Mr.  Dunn's  con- 
tmumg    »  hold  it. 

When  the  lettei  '>;<;  produced  by  Mr.  Esten.  it  was  consid- 
ered  so  perfectly  ..cUi^Sactory,  that  he  was  instructed  lo  retu-n 
to  Buffalo  the  following  morning,  and  sign  the  agreement  on 
belialt  ol  Capt.  Truscott,  by  virtue  of  a  power  of  attorney  he 
then  held  :  and  this  was  carried  into  eflect  on  the  30th  or  31st 
October. 

h  has  been  already  noticed  tnat  Mr,  Brown  was  under  agree- 
ment with  two  other  responsible  persons  lo  indemnify  the  un- 
dersigned against  any  debts  of  Green,  Brown  k  Co.  and  Brown, 
Buckland  &  Co.— and  such  a  bond  had  been  executed  by  him,' 
Rodman  Starkweather  and  Lyman  A.  Spalding,  and  was 
one  of  the  instruments  deposited  with  J.  L.  Talcott  on  the  2nd 
October 


ii 


* 


23 

On  llu'  1st  Novcii)b«'r,  Ihc  uniltrsiguod  were  aircsteU  at  Ta- 
roHto,  on  u  C;i()i:is  sit  tin?  cuit  of  tlic  Ciiv  !».iuiU  of  Huflalo,  for 
an  allcgtMl  dcbl  of  .^-lOjOOO  nnd  upuai-fi; ;  and  fimling  ttiai 
lliey  wt-ro  iiidivi.Innllv  jlc^criLM-fl  as  th«'  acceptors  of  ccriain 
bilis,  wliolly  mikiunvM  »o  iIumm,  thiy  bucarne  ■nnprcssed  with  the 
belief  that  some  fort-'ery  had  hocii  comniitted  ;  and  they  des- 
patched a  messenger  to  lUiiralo  in  the  greatest  l»astc  to'akcer- 
tain  the  facts  of  the  case.  In  the  meanwhile,  it  was  neces- 
sary for  the  undersigned  to  procure  bail;  and  regarding  it  as 
tl»e  mere  alfair  of  a  day,  they  did  nyt  hesitate  depositing  with 
the  gentlemen,  wiio  came  forward  in  their  behalf  at  Toronto, 
certain  debentures,  the  property  of  oilier  parties  chiefly  resi- 
dent  in  England,  and  which  had  been  left  in  their  custody  for 
the  mere  purpose  of  receiving  the  interest  accruing  on  ihem 
from  lime  to  lime. 

It  is  perhap:  needless  to  observe  ihat  no  earthly  considera- 
tion would  have  induced  the  undersigned  knowing'.y  and  wil- 
lully  to  have  placed  the  owners  of  these  debentures  in  a  situa- 
tion liable  to  loss;  and  ii  the  remote  possibility  of  it  had  oc- 
curred to  them,  they  would  have  submitted  to  immurement  in 
a  dungeon  as  a  predrabie  alternative. 

On  ihc  evening  of  the  1st  November,  Mr.  Esten  uccompa- 
nied  by  a  clerk  of  IMr.  TaicoUs,  arr-ved  at  Toronto,  and  de- 
livered the  'leed  of  dissoluiion,  the  bond  of  indeninily,  and  cer- 
tain mortgages,  for  which  the  corresponding  effects  mentioned 
ill  the  Schedule  were  exchanged. 

For  these  professional   services  iNlr.   Talcott  afterwards  re- 
tained, out  of  money  collected  for  the  undersigned,  ^173  50, 
as  wdl  app(  ;ir  from  the  following  account.       [46.] 
*'  Nov.  'io  J     .   Deed  dissolution,  attending  consult,  to  settle 

setting,  eng.  copies,  .  >  .^50 

Dr.  l)onds,  mortgages,  covenants  and    other    pa- 

peis,  eng.  and  sealing,  -  -  -         25 

Exan)ining  and  written  opinion  on  six  lilies,        -  60 

Couuoc'l  fee,  general  servi.es  and  advice  on  settle- 
ment with  Brown — Custody  and  delivered  pa- 
pers, he.         '  -  .  -  -  50 

Examining  witii  Mr.  Austin,  and  written  opinion, 
on  construction  of  agreement  with  iirown  as  to 
nature  of  security  called  for,  -  -  10 

Sending  student  to  Toronto  5   c'-^ys   exclusive  of 

expenses,  -  -  -  -  -  10 

Dr.  Release  from  City  Bank,       -  -  -         I 


.^•206 


;>    \ 


m 


Bi 


\n 


\ 


Dec.  2.  Cr.  part  of  accomil  assumed  by  Brown, 

Balance, 


32  50 


r^     ,  -  -  "         .^l^S  50 

On  the  3rd  the  messenger  returned  from  BuDalo,  bearing  the 
following  letter  from  Mr.  Brown. 

^  Buffalo,  Nov.  3rd,  1837. 

Messrs.  1  ruscott  &:  Green,  Toronto  ;  [47.] 

Dear  Sirs,— I  will  positively  arrange  with  the  City  Bank  this 
day.  The  step  which  they  have  taken  is  an  outrage  which  will 
recoil  upon  themselves.  I  have  some  five  or  six  times  talked 
with  the  officers  of  the  Bank  ;  I  have  as  often  frankly  told  therj 
of  our  pending  negociations,  and  assured  them  that  so  soon  as 
complete,  the  business  would  be  for  me  to  arrange  ;  and  their 
reply  has  been,  "  very  well  ;"  but  the  step  has  been  taken  and 
good  faith  violated,  and  it  cannot  now  be  helped.  You  have 
however  nothing  to  fear,  except  the  injury  which  it  may  prove 
to  your  circulation,  &c.,  and  to  avert  this  I  will  give  you  a 
statement  of  facts  which  you  will  be  at  liberty  to  use. 

I"  f'aste,  (Signed)         R.  S.  BROWN. 

Notwithstanding    these    assurances,    op    which   undue  reli- 
ance was'placed  at  the  time,  Mr.  Brown  took  no  effectual  steps 
for  relieving  the  undersigned,  and  discharging  the  proceedin,"-s 
ro  unjustly  instituted  at  Toronto.     Hitherto  they   had  strug- 
gled   effectually  under  every   difflcultv— they   had    sustained 
themselves  under  the  heavy  losses  and  "  deferred   debt   imposed 
upon  tliem  at  Buffalo-  -they  had  met  .their  own   engagements 
notwithstanding  the  impossibility  of  collecting  bills  in  Canada 
— they  had   continued    cash  payments  for   a"  period  of  seven 
months,  during  which  the  Banks  in  the  United  States  had  been 
constrained  to  suspend— they  had  seen  the  chartered  Banks  of 
Lower  Canada,  and  the  Commercial  and  Farmer's  Bank  of  the 
Upper  Province  abandon  the  contest— and  they  were,  in  fact,  by 
untiring  energy  and   the  confidence  still   reposed    in  them,  re- 
trieving their  losses,  and  had  entered  into  a  contract  [48.]  for 
the  redemption  of  the  whole  of  their  circulation  on  verv  favor- 
able terms,  when  the  City  Bank  of  Buffalo  struck  a  vit"al  blow 
at  their  credit  by  arresting  them  under  the  disingenuous  dec  la- 
ration  of  their  being  individual   acceptors  of  certain  bills,  aL 
though   it  eventually  appeared  that  the  acceptances  were  thosp 
of  Brown   k,  Buckland,  or  Green,  Brown  &  Co.— and  which, 
if  literally  and  truly  set  forth  in  the  aliidavits  ofdebt  would  nut 
iiave   been  sufficient,  by  implication,  to  have  arrested  the   un- 
dersigned. 

Thus   betrayed   on  one  hand,  and    oj)prossed  on  the  oilier, 
they  were  aroused  to  a  sense  uf  litcir  qwh  liiualioM  liiivinj^  be- 


\ 


ri* 


25 


32  60 


,A 


her 


cornc  irrotrievabli: — Ijiji  tliougli  rniii  scirued  lo  Uv  impending; 
over  lliemsclves,  ,l!ipy  luui  no  reason  lo  call  in  question  their 
ultii.rite  ability  lo  j-erlorni  biibMantiul  jij-ticu  lo  all  their 
creditors. 

There  are  some  debts  of  a  more  sacred  character  than  olh« 
ers,  however  they  may  he  regarded  as  co-equal  iti  Uie  eye  of 
the  iaw  :  lie  who  reposes  confiiienee  seems  most  entitled  to 
protection  ;  and  upon  this  principle,  it  was  determined  to  se- 
cure; in  the  first  instance,  the  Canadian  depositors  of  the  Bank, 
and  those  who  kept  accounts  with  it;  and  afterwards  to  appro, 
priatc  the  rc/idue  of  their  eilects  to  the  redemption  of  its  circu- 
lation,—probably  dispersed  in  many  hands,  aiid  not  held  from 
motives  of  favor  to  the  Bank,  but  of  convenience  to  the  partie.^. 

In  th ;  same  spirit  certain  bonds  and  morfgaij,es  received 
ironi  Mr.  llrown  were  assiancd  to  secure  various  heavy  debts 
then  existing  in  Enj^land,  and  others  to  raise  a  new'loan  of 
i;;4.500  sterling  ;  but  with  a  distinct  understanding  «h:u  if 
events  should  demonstrate  the  inadeijuacy  o(  the  security,  or 
the  dau'rer  of  employing  the  money,  it  siiould  be  retunsed  lo 
the  parties  :  the  proj)riety  of  adopting  this  latter  alternative  be- 
came suflLi-iuiy  apparent  when  Mr.  Babcock  declined  receiv- 
ing the  Court  street  property  at  a  sum  exceeding  .$'20,000,  al- 
though his  own  partner,  Mr.  Potter,  iiad  assigned  a  value  to 
it  of  .$50,000;  and  had^  by  his  acts,  intluenced  the  under- 
signed to  accept  it  conditioiially  for  .$10,000. 

Therefore,  assuming,  what  appears  to  be  the  fact,  that  all 
iht  mortgages  are  over  estimated  much  in  the  same  ratio,  it 
would  follow  thai,  instead  of  representing  means  for  the  ul- 
timate discharge  of  debts  to  the  amount  of  .$'130,061,  they 
could  not  be  expected  to  reali/e  more  than  .$o9,157— in  which 
case,  the  capital  of  the  undersigned  having  been  already  sunk, 
the  creditors  of  the  Agricultural  Bank  would  sustain  a  loss  not 
{ireviously  anticipated  of  .$70,904,  conslitiiiing,  with  former 
deliciencics,  a  sum  equivalent  to  the  whole  amount  of  notes  in 
circulation. 

Under  such  lamentable  prospects,  it  would  indeed  have  been 
an  act  of  gratuitous  folly  and  injustice  to  borrow  UMiney  from 
one  party,  on  insuflicietit  security,  in  order  to  pay  off  the  debt 
of  another;  and  hence  their  resolution  to  return  the  greater 
pan  of  the  last  loan  of  i:4,500  sterling  to  England— and  leave 
the  mortgages  charged  with  a  diminished  sum,  which  should 
not  endun^^er  the  aciual  bona  tide  holders  thereof. 

Jl  should  be  observed  that  wheii  every  probability  had  dis- 
appeared of  Ml'.  Dnnirs  exchanging  tiie  Couiiiiorcial  stock  for 
the  Court  succt  mortgages,  Mr.  Urowii's  a[iplicutions  were  an-- 

4 


T 


II 


h^ 


M 

"i  (lu-  >7i!.  or  .»,sih  ( )i,ul,r4' «  uiul  Ilu-Im:;'.  on  iIm-  J  hi.  r.Lnta. 

Ls{,^n  v^,u'ntr^  ilw  ,.-rc..Mifnt,  Iu.«  rcpiiotl,  "  {,nt  voii  hr.ve  m.l* 
i^;n  I  a:    l.u.r,  ;;„.]  never  uill    h.,vt  it."     Thn^    iMtinuaiu.- 


H.»m:v(.^  .uh,|„,ue,,i  to  t\iU  tid.iii^.:,.,j,    MrriVnmn  pro. 


cl.  ceci  A  l.uer  ;aicl  read  part  ui'  the  co.Uents  to  the  un^evLn, 
ccJ  Kiinuulmy  thatJiua.  Tiin  letter  m  question,  and  i.ih]o.'. 
lak.nyt,  rcium  ii  to  Mr.  Tulcoit.  On  communloaunfr  the 
nrcumstance.  to  Mr.  Estei,,  I.e  npplied  for  iUe  restoralicm  ol' 
MS  letter,  hut  in.fleciually ;  and  ho  is  .lovv  prepared  in  prove 
he  contents  on  oath,  as  sveli  as  the  Conversation  vl.i.'a  he  Jrul 
ifu.  previous  cveimig  with  Mr.  lirown,  and  nhich  led  t»  its  be 


»iv(?  written. 


•n dm  cd  Mr.   J.rouu  lo  thseontinue   his  applieations  for   ihl. 

no  «!  ""1  ?  '•""*^''  '?'"  '•'  '^"'^  itidireetly  .(Tect  his  par- 
po^es:  and  havn^y,  on  the  Is^h  May,  j,ot  p...ession  of  there- 
man  n.g  bdls  on  London,   which  the  »nde?rsi^ned  had    covo- 


hon  d  1  oh!  .ho  inuIcr.<igrK.i  to  hail.     Accordingly,  on  the  fol- 

Ma  ^,     V,"''rrT"'.''^''^^  ^P^^"    t''^'^'   l)^    the  Deputy 
A  ..  .hal,  ah  hough  by  h:.-  nululgcnce  rhey  were  perndtted  L  hi 

;    MM  r'-''    r''."'r>^'''""'""^  restrictions,  inui]  the  31sl  May, 
havMn^  Uuled  ni  arr.vn.g  at  a  .etllement  with  Mr.  Dnnn 

WH^sn   '!:'T'^'/"''    M.  proportion   to  their  difliculties,    ih.y 
wuc  suirendered  n)to  the  custody  of  the  Sheriir. 

J  he  careful  and  unprejudiced  reader  will  collect  from  the 
J'^'Pgo.ntT  statement  au),)le  evidence  to  prove, 

jst  That  George  Truscoii  and  John  Chn'ehtnd  Green  fur- 
"ol'ed  tne  entire  capital  of  the  firms  at  IJnffalo  and  New  York 
—and  that  ,t  exceeded  double  the  «.ao5UU  ihey  were  uiuler  hi- 
gygenuMit  to  snp})Iy. 

srntatn>ns   the  edect  oi"  wldrh  wu.  to  cunveri  ten)porary' ad- 
vanccs  nito  permanent  capital. 

•ird.  That  they  placed  a  blind  but  ge.ierous  confidence  in 
ine  honor  and  integrity  of  the  parties,  with  wiioni  (hev  were 
^"onnectrd,  and  that  this  confidence  was  abused 


/^»^ 


^> 


\^ 


r 


/JiWV 


.'* 


27 

4th.  Tliattliclr  early  difliniiltifs  originated  hi  the  itnfu«tifia^ 
hh  f.|>'rnIa(ioi.s  of  l^rovvn  &  JUicklaml  in  Bnnk  stocU,  com- 
xnrnctil  in  violntion  of  the  terms  of  their  parlnersliip.  and 
without  their  knowledge,— imperfectly' alluded  to  in  their  pro- 
gress.--and  developed  when  complant  was  un<\vailin£',~~!to(l 
then  the  results,  as  a  question  of  profit  and  loss,  misrepresented, 
iil!).  That  the  flagrant  and  ecrot  appropriation  hy  Mr*. 
Hrowti  of  so  large  a  sum  at  New  York  for  private  purpcsfs, 
iiilinltely  increased  their  embarrassmctil,  aud  alsoentaileu*  upon 
(he  Urtn  pecuniary  loss— inasmuch  as  Mr.  Brown  borrowed 
money  for  Green,  Brown  &  Co.  at  the  mtc  of  4  per  crnt.  per 
niontlj,  and^  applied  it  to  the  use  of  Starkweathei*  t<c  Brown 
for  one  half  the  consideration  paid. 

Cth.  That  owing  to  such  ^cts  c^  misconduct,  tf.e  AfTi/rrof 
ttie  undersigned  became  so  deranged  at  Buffalo  and  New  York, 
they  u-ere  required,  by  the  rery  author- of  their  calamitv.  to 
make  a  deduction  of  $5G,13G  73  from  the  anyDunt  owinV  to 
them,  besides  abandoning  their  share  of  undivided  profits  to  llie 
amount  of  .<;'30,7Q7  38,  and  dividends  on  Hank  stock  estima- 
ted at  $21,574. 

7ili.  Tiiat  all  these  fosses  were  met  with  Jess  re!tictnnc<»,  bc- 
r.anse  their  efltcts  did  not  extend  to  the  immediate  creditors  of 
the  undersigned  in  Canada  j  and  because  this  sacrifice  carrietl 
iviih  it  a  guarantee  on  the  part  of  R.  S.  Brown,  R.  Stark wealW- 
er  and  L.  A.  Spalding,  to  protect  the  interests  of  the  creditors 
within  the  United  States. 

8th.  Tiiat,  reckless  of  the  solemn  obllgalions  of  this  bond, 
Mr.  Brown  has  token  no  steps  'o  discharge  his  debt  to  ti»e  City 
Rank — and  by  tisis  neglect  has  irreparably  injured  the  iin- 
dersigned,  and  occasioned  the  detention  of  property  at  Toron- 
to belonging  to  innocent  parties. 

9th.  That  deception  lias  been  practised  on  the  undersigned 
in  representing  property  at  Buffilo  as  unquestionable  secarilv 
for  .'^■136,061,  when  it  cannot  be  made  available  to  iheir  cred-   . 
ilors  for  more  than  *> 5 0,1 57. 

1 0th.  That  Mr.  Brown  has  acquired  and  retains  unlawful 
possession  of  a  letter  to  Mr,  Esten,  which,  under  an  equitable 
construction,  constitutes  as  much  a  part  of  the  agreement  of 
the  15th  September  as  if  it  had  been  embodied  in  it  a*  a  d»- 
linci  clause  ;  and  that  the  agreement  itself  was  not  executed 
until  such  letter  had  been  given. 

And  finally,  that,  having  plundered,  duped^  and  betrayed 
his  victims,  he  has  thrown  them  into  prison,  on  account  of  their 
inability  to  discharge  a  debt  to  a  third  party  of  |18,000  -and 
which  inability  proceeds   from  his  own  breach  of  faith  in  ool 


T 


2H 


1  VI 


giving  them  an  adequate  security  for  $4G,000,  nrknowIeclLCfl 
to  be  owinc^  thetn,  and  winch  insiiflicient  bojids  and 
are  new  remaining  in  Mr.  Talcoii's  hniids,  tl 


adage  so  obnoxious    to   Iniinanlty, '*  iliat  the 
giv^,  but  ihelnjtirGr  nrver." 


morlqfifrt's, 
MIS  vt'i  ifviiig-  tiie 
injured  may  for 


It 


now  rem 


inis  ior  the  undersigned  to  perform 


a  PAove  agriM' 


able  duty  tiiaii  has  hiilic-rto  devolved  upon  Hkji),  bv  acluiowl. 
cdgino-  the  general  kin(h)ess  and  Kynipathy  which  has  been 
evuictd  luwardi;  thcni  by  the  udiabitanis  of  this  city  j  and. 
above  all,  to  oApress  their  grateful  sense  of  the  obligations  the  J 
Utt  tmdcr  to  l!»e  genlleniea  who  have  so  nobly  and  confldin  Hy 
Cojr>^  lorward  to  offer  bail  j.,  i[.elr  behaU;  aliliough  posse^teV 
of  a  very  imperfect  outhuc  of  their  afkurs,  and  laboring  uj.der 
the  ^j;,advanla{3'e  cf  no  previous  acquaintance  with  them. 

OEORGK  THUSCOTT, 

J0]1..V  CLEVELAND  GREEN. 

•I 

Buffalo,  27th  June,  1S3Q.  ^ 


# 


